Citing strong loan growth, an improved net interest margin, increased fee income and improving efficiency, Canadian Western Bank reported record first-quarter earnings.

The Edmonton-based bank said earnings for the quarter end Jan. 31 were $9.35 million, up 26% from $7.40 million in the first quarter of 2002 and up 21% from $7.73 million in the fourth quarter of last year. It was the bank’s 59th consecutive quarter of profitability.

Diluted earnings per share were $0.67 ($0.74 basic), an increase of 26 vs $0.53 ($0.59 basic) one year ago. Loan growth was 15% year-over-year and up 4% from the previous quarter. Net interest margin was 2.68% vs 2.58%. Credit, retail and trust services fees increased a combined $1.3 million or 30% over the first quarter last year and the previous quarter.

Credit quality remained strong and stable, while provision for credit losses was 0.25% of average loans vs 0.27% one year ago. Efficiency ratio continued to lead the industry and was 46.0% vs 48.7%. Return on assets improved to 0.97% from 0.85%.

The bank said its total assets were $3.92 billion, an increase of 14% from one year ago.

President and CEO Larry Pollock said in a statement that while the bank has a strong appetite for acquisition opportunities, the results for the first quarter have all come from organic growth. He said the bank expects continued internal growth as the year progresses because of stable economic conditions in western Canada that are benefiting small to mid-sized commercial enterprises, the bank’s target market. He also said the bank’s “Think Western” brand of service is having a positive effect by helping to grow market share.